An effective strategy implementation framework for South African banks

Abstract

This study developed and validated a strategy implementation framework within South African banks. Although strategy formulation has been extensively examined in the literature, limited empirical attention has been given to strategy implementation performance within the banking sector, particularly in emerging market contexts. This study addressed this gap by conducting a holistic and systemic inquiry into the barriers and success factors influencing strategy implementation in a single South African banking institution. Guided by an interpretivist research philosophy and an inductive approach, the study employed a qualitative single embedded case study design. Data were collected through semi-structured interviews with 15 strategy implementation staff members across multiple organisational levels and functional areas, including operations, coordination, programme executives, management committees and executive leadership. Content analysis was used to identify recurring themes relating to strategy implementation practices, constraints and enabling mechanisms within the bank. The findings revealed multidimensional barriers to effective strategy implementation. Organisation-related challenges included ineffective senior management practices, unclear accountability structures, limited strategic understanding, insufficient skills, staff shortages and a risk-averse culture. Finance-related barriers involved misalignment between strategic objectives and budget allocation, as well as limited financial resources. Technology-related constraints included inadequate infrastructure and slow technological responsiveness. Stakeholder-related barriers were characterised by poor vertical communication, inadequate information sharing, conflicting priorities and weak coordination mechanisms. Correspondingly, the study identified critical success factors across the same dimensions. These included strategic leadership, aligned performance agreements, skilled and well-trained employees, shared values and a clear organisational culture, integration of operational and strategic budgeting processes, adequate resource allocation, access to appropriate technology and inclusive stakeholder engagement supported by regular strategy review processes. Drawing on the Viable Systems Model and the Swiss Cheese Model as complementary theoretical lenses, the study developed an integrated strategy implementation framework that conceptualises strategy execution as a dynamic, system-wide process requiring alignment across structural, financial, technological and stakeholder domains. The framework was validated through two focus group discussions involving strategy implementation staff from the case organisation and experienced professionals from central, retail and investment banking environments. The validation process confirmed the coherence and practical relevance of the framework, while recognising that its empirical grounding is situated within a single institutional context. The study contributes to both theory and practice by providing a contextually grounded, theoretically integrated and empirically validated framework for strategy implementation within South African banks. While the qualitative design and single-case focus limit statistical generalisability, the framework offers analytical transferability and establishes a foundation for future quantitative testing and application in other organisational and industry settings.